For the Month of December,its First Month of Operations,the Radcliffe

question 20

Multiple Choice

For the month of December,its first month of operations,the Radcliffe Corporation completed and transferred 800 units of product costing $80,000 to produce to Finished Goods Inventory.If Radcliffe sold 650 units during the same month,how much was cost of goods sold for the same period?

• A)$80,000
• B)$8,000
• C)$6,500
• D)$65,000

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Definitions:

Prepaid Expenses

Payments made in advance for goods or services, which are recorded as an asset until they are consumed or used.

Accrued Revenues

Income earned but not yet received, representing goods or services that have been delivered but payment has not been collected.

Unearned Revenues

Money received by a company for goods or services yet to be delivered or performed, considered as a liability until earned.

Unearned Service Revenue

Income received by a company for services yet to be performed or delivered.